By Enrique Saldana

Who is on first, and what is on second, in the commercial lending business in The Rivera Maya and Playa del Carmen?

In the commercial lending business the famous joke of “who’s on first? what’s on second?” takes on a special and important role. Not only have I personally dealt with many commercial loan investment bankers, brokers, and lenders, but I have also heard many horror stories of people that have spent large amounts of money trying to get funding for their projects. Many of these funding companies or individuals end up to be exactly that, a “joke”. 

Unfortunately, commercial loan investment bankers, or brokers that offer commercial funding, are not regulated in the USA, much less in Mexico. I can recall of a so-called group out of the United States, whom after several complaints were made, an investigation took place, and they were finally closed down. Therefore, why is it so important to know, who’s on  first and what’s on second? Well, because unless you want to become another statistic of clients being ripped off by their commercial loan investment bankers, or commercial loan investment brokers, you must make sure you know who is sitting where, and on which side of the plate they are on.

So, who’s on first? 

On first there should be a reputable company that can provide you with all the information required for the funding.  They should be able to prepare a good business plan, with 3 to 5 years of projections, profit and loss statements, balance sheet statements, and any other required documentation an investment project requires.  This company must have the expertise and know how required to put the project together.  Of course, they will charge you a fee. No one works for free.  However, that fee should be a reasonable one, depending on the amount of work required by your project. The man on first is your LEAD OFF man.  He works for you.  He must do everything possible to get you your loan. 

What’s on second?

On second there should be a reputable commercial lender, commercial loan investment banker, or commercial loan investment broker.  Someone with a proven track record of successfully funding projects similar to yours.  Someone that can promise a successful closing, and who will do whatever it takes to make the deal happen.You must remember that the person on second is nothing more than a middle man.  Many of which make false claims of successful funding, and who may, at the end of the day, leave your bank account severely depleted. The person on second will claim to have a group of investors, commercial banks, or lenders at its disposal that funds their loans.  Your man on first should be able to check on that and verify the information.

At the end of the day, who’s on first, matters as much, if not more, than what’s on second since he/she will be your eyes and ears. Commercial lending is not an easy task; you must first and foremost, put on your investment hat and think, is my project something I would want to invest in?  Do this, with a level head, and then go on and look for your man on first.  And remember who’s on first matters most, if not more, than who’s on second, at least at the beginning of the transaction.  Just like in baseball, you must first reach first base, and then you move onto second, to set yourself in a position to score.  If your man on first is capable, experienced, and most importantly honest; you can count on reaching home with a good “ground ball”, with no need for a “home run”.

This article and information courtesy of World Properties International Asesores Inmobiliarios Playa-Riviera Maya, for more information visit their website at: www.wpirealty.com/asesoresinmobiliarios